7th Pay Commission - Terms of Reference

7th Central Pay Commission 

            The Union Cabinet today gave its approval to the Terms of Reference of 7^th Central Pay Commission (CPC) as follows:-

a)      To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:-

i.	Central Government employees-industrial and non-industrial;
ii.	Personnel belonging to the All India Services;
iii.	Personnel of the Union Territories;
iv.	Officers  and   employees   of  the   Indian  Audit  and         Accounts Department;
v.	Members of regulatory bodies (excluding the Reserve Bank     of India) set up under Acts of Parliament; and
vi.	Officers and employees of the Supreme Court.

b)      To examine, review, evolve and recommend changes that are desirable and feasible regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the Defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c)      To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d)     To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

e)      To review the variety of existing    allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account.

f)       To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g)      To make recommendations on the above, keeping in view:

i.	the economic conditions in the country  and need for fiscal prudence;
ii.	the need to ensure that adequate resources are available for     developmental expenditures and welfare measures;
iii.	the likely impact of the recommendations on the finances of the State             Governments, which usually adopt the recommendations with some           modifications;
iv.	the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and
v.	the best global practices and their adaptability and relevance in Indian    conditions.
h)	To recommend the date of effect of its recommendations on all the            above.

The Commission will make its recommendations within 18 months of the date of its constitution.  It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the 7^thCentral Pay Commission.

Background

            Central Pay Commissions are periodically constituted to go into various issues of emoluments’ structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.

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Circular-06/2014

ALL INDIA AUDIT & ACCOUNTS ASSOCIATION

CSV WARRIER BHAWAN

15/1089-90, VASUNDHARA, VASUNDHARA (P.O.), Dt. GHAZIABAD (U.P), PIN-201012

Ph: 0120-2881727/0 – 98681 45667

E-mail: auditflag@gmail.com

Website: www.auditflag.blogspot.com

Reference: AIA/Circular-06/2014                                                          Dated: 16^th February 2014

To

Unit Secretaries,

Members & Spl. Invitees – NE &

Members of Women’s Committee

Dear Comrades,

MEETING WITH JS (Per.) ON UPGRADATION OF AUDIT-ACCOUNTS PAY

            On the issue of grant of upgraded pay – by effecting rectification in the implementation of 6 CPC recommendations – we had a meeting with Joint Secretary (Expenditure) – i.e. JS (Per) – on 14^th February 2014. Coms SK Vyas, KKN Kutty, MS Raja and V Bhattacharjee were present.

            The discussions were in continuation to the discussion that the staff side, JCM had in the NAC and as decided there-in.

            The meeting was inconclusive and there is nothing more to be expected from a meeting that was held after 18 months. The fact that should be understood is that the meeting was held after 18 months, one day after the 2-day strike by the central government employees and few days after the one day dharna on 20^th January 2014 that was held as per JAC call demanding grant of higher pay scale to audit and accounts cadres.

            This definitely gives the message that there is no alternative to struggle and sustained struggle will definitely bring results. The onus is on one and all of us – to take the struggle forward.

            A gist of discussion and our presentation is given in the enclosed JAC Circular-04/2014.

            All the units are requested to convey the content of the JAC Circular to the mass of membership without delay and prepare the membership and thus the organisation for a sustained struggle to achieve the upgraded pay scale for the audit and accounts cadres. Unity of the membership cutting across the cadres and sustained struggle alone will bring about the desired results.

(M.S.Raja)

Secretary General

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JOINT ACTION COMMITTEE OF

ACCOUNTS & AUDIT EMPLOYEES & OFFICERS ORGANISATIONS

17/2 – C, P & T Quarters, Kali Bari Marg, New Delhi: - 110001

Email: v.aicaea@mail.com

No: JAC/ Circular-4/2014                                                                            Date: 15^th February 2014

To

Chief Executive of Constituent Organisations &

Conveners, local JACs

Dear Comrades,

We congratulate you for having observed dharna by Executive Committee Members on 29^th January ‘14 all over the country in almost of all the offices of IA&AD & Organised Accounts. We also take note of the fact that 48 hour strike call on 12-13 February ‘14 has been to a certain extent implemented in many offices of IA&AD and organised Accounts.

            These measures have had its impact and a meeting with JS (Per) (i.e. Joint Secretary, Department of Expenditure) to discuss the agenda item 28 of National Anomaly Committee regarding Audit / Accounts wage structure took place on 14 February,14 (i.e. very next day of our strike action).

The gist of the discussion is as under:

Pay Scale of Auditors/Accountants:

We pointed out that the Six Central Pay Commission in para 7.56.8, 7.56.9 and Para 7.56.13 has only recommended the revised pay structure of SA (7.56.8), SO, AAO, AO & SAO (Para 7.56.9) and Divisional Accountant the Sr. DAO (Para 7.56.13). As regards other posts in IA&AD & organised Accounts i.e. Auditors/Accountants the Six Central Pay commission had separately recommended (vide para 7.56.10) parity between Secretariat and non-secretariat in chapter 3.1 of the report.

            In para 3.1.14 it has been specifically stated that the posts of Auditor/Accountants being in the Pay Scale of 4500-7000 should be placed in the PB-2 (Rs.9300-34800) with GP of 4200.

            However Auditor/Accountants have been given the pay structure of PB-1 (5200-20200) Grade Pay of 2800 which is incorrect. On the basis of para 3.1.14 Auditor/Accountants should be placed in PB2 (9300-34800) with Grade Pay of 4200.

Senior Auditors/Accountants

In Para 7.56.8, the Six Central Pay Commission had recommended for Sr Auditor/Accountant (SA) PB-2, GP 4200 in which the Assistants of Central Secretariat and SA has been placed. The observation of Six CPC that Govt. had never conceded the principle of parity between Assistants of Central Secretariat Services and SA is not factually correct. In the year Nov.1983 Govt. has proposed to grant the pay scale of Assistant of Central Secretariat i.e. 425-800 to 80% posts of Auditors. Again the 4 CPC has recommended the pay scale of 1400-2600 to Assistant of Central Secretariat and SA on the basis of merit which was accepted by Government. Finally the pay scale of Assistant of Central Secretariat i.e. 5500-9000 was granted to SA notionally w.e.f. 1.1.96.

            From these developments, it is fully established that parity between Assistant of CSS & SA has been conceded by the Government time and again.  Now after the Sixth CPC, the Government has further upgraded the pay scale of Assistants of Central Secretariat to PB-2 9300-34800 with GP of 4600 w.e.f. 1.1.2006. With effect from 1.1.2006 the Sr Auditors/Accountants should also be granted the GP of 4600 in PB-2, 9300-34800.

Assistant Audit /Accounts Officers

In para 7.56.9 6^th CPC has made the following recommendations: ‘The post of SO will be placed in the next higher pay scale carrying the GP of 4800 in PB-2 which corresponds to the pre-revised pay scale of 7500-12500. This upgradation will place the posts of SO and AAO in an identical pay scale, thus necessitating the upgradation of the later category (AAO)’. The 6 CPC had therefore recommended that the post of AAO & AO should be merged. Government have in their resolution dated 29.08.2008 decided that post of SO and AAO should be merged ‘as per recommendation of 6 CPC’.

            From this it is very clear that the Government have erroneously read the recommendation of pay commission according to which the posts of AAO & AO should be merged. This error has to be rectified by merging the posts of AAO with AO granting the pay with GP of 5400 in PB-2.

Audit Officers

Audit & Accounts Officer had been assigned the pre-revised pay scale of 7500-12000 w.e.f. 1.1.96 as recommended by 5^th CPC. As a result of re-structuring in 1990, 20% posts of Divisional Accountants have been upgraded as Gr. DAO in the pre-revised pay scale of 7500-12000 bringing them at par with AOs. Therefore the AO should be placed in PB-2 GP of 5400 in which Sr. DAOs have been placed on the basis of recommendations of 6 CPC in para 7.56.13 and not in PB-2, GP of 5400 as has been done. Consequently Sr. AOs have to be granted the next higher grade PB-3, GP 6600.

 In this connection the observation of 6 CPC that the entry pay for IA&AS is presently 8000-13500 - which is identical to the scale of SAOs - upgrading their pay scale any further will place them in a higher level than the entry grade of IA&AS, which is a promotion post. This observation is not based on actual practice. AOs when they are promoted to Gr. A post, they are not placed in the entry grade of IA&AS, but in the post of Dy. Accountant General which is in the PB-3, GP of 6600. Therefore the perceived anomaly would not at all arise and Sr. AO can legitimately be placed in PB-3 GP of 6600 to maintain the vertical relativity.

            We also pointed out the press release issued by PIB dated 14^th August 2008, conveying the Cabinet decisions implementing the recommendations of 6 CPC. In Para 11.5 of this release, it has been stated that Government has continued the present position of granting  Group A scale to Gr B officers after completion of 4 years of service and this officers would be placed in PB-3 instead of PB-2 recommended by 6CPC. This would benefit the Gr. B officers of Railway Accounts Services, CSSS, DANICS &DENIPS. 

            However this dispensation which has been allowed to all Gr. B officers of the categories specified above except in Audit/Accounts Services. Therefore, what has been given is in contrary to the above policy of the Government.

Comrades,

            The above gist of discussions should be explained to the entire membership through pamphlets, separately for each category so that the justification for upgradation in the pay structure is fully understood by them. General Body meetings should also be held where this circular is read and discussed. Members should be encouraged to offer their views and comments on the justification which has been placed by us before the Government for upgrading our wage structure. The membership should be informed that only if we collectively manifest our unity through massive dharnas, mass deputation etc the Government may pay head to our arguments and consider them.

            To create requisite pressure upon Government we should organise demonstrations, Dharna, Mass deputations etc once in every fortnight. It is only then that when another meeting is held with Js(Per) & JS (Estt) meaningful negotiations may  take place and some outcome may be there. As we want that our legitimate demand for upgraded wage structure should be agreed by the Government we have to organise every fortnight programmes, dharna, mass deputation, etc. It would be necessary that a continued campaign is carried out amongst the membership that the entire membership is organised and mobilised in these programmes. Please implement these programmes and intimate the total strength of membership and the number of membership who participated in the programmes.

            The apex JAC will meet again in June or even earlier if the next meeting with the Government takes place earlier to review the mobilisation achieved through these programmes as also the outcome of negotiations and then to decide further intensification of the struggle for upgraded wage structure. Therefore, as per our decision of the Joint National Executive meeting of 11^th January 2014, we shall have to go ahead with the programmes of Joint Dharna by all the constituents of the station in the 2^nd or 3^rd week of March 2014 and Massive signature campaign during April/May 14. Date of Dharna and the format for signature campaign shall be finalised and circulated shortly.

                                                       With greetings,

Yours fraternally,

(V. Bhattacharjee)

Convener

Circular-05/2014

ALL INDIA AUDIT & ACCOUNTS ASSOCIATION

CSV WARRIER BHAWAN

15/1089-90, VASUNDHARA, VASUNDHARA (P.O.), Dt. GHAZIABAD (U.P), PIN-201012

Ph: 0120-2881727/0 – 98681 45667

E-mail: auditflag@gmail.com

Website: www.auditflag.blogspot.com

Reference: AIA/Circular-05/2014                                                          Dated: 13^th February 2014

To

Unit Secretaries,

Members & Spl. Invitees – NE &

Members of Women’s Committee

Dear Comrades,

HATS OFF TO ALL VALIANT COMRADES FOR THE SUCCESSFUL 2-DAY STRIKE

The call given by the Confederation for the 2-day strike on 12-13^th February 2014 in pursuance of the 15 point charter of demands including merger of DA, grant of Interim relief, statutory pension for all, withdrawal of 5% condition on compassionate appointment have been well received by the employees across the country.

In IA&AD, the strike was successful in Kerala, Tamil Nadu, Mumbai, Nagpur, Raipur, West Bengal and Agartala. The strike was partial in Assam, Andhra Pradesh and Delhi. Though the performance in IA&AD may not match organisations in other departments like postal or Income tax, it is noteworthy that despite many odds there is an improvement in many stations. Despite disruption the leadership in Allahabad Audit tried their best to organise strike and remained on strike and held massive demonstration on both the days. The Executive Committee in Gwalior also went on strike. Demonstration was held in Punjab office and Lucknow.

The Central HQrs greets all the comrades for their valiant efforts in campaigning and organising the 2-day strike. CHQ further greets all the comrades who made it a successful and historic strike.

With greetings,

Yours fraternally

(M.S.Raja)

Secretary General

STRIKE - PRESS STATEMENT BY CONFEDERATION

P R E S S     S T A T E M E N T

Dated: 12^th February, 2014

  

As per the report received at the Central Head Quarters of the Confederation, near about 13 lakhs Central Government Employees have commenced the two day strike from Midnight of 11^th Feb. 2014. For 48 hours. The Strike action will continue upto the midnight of 13^th Feb. 2014.  The functioning of the Government in the Postal, Income tax, Civil Accounts, Ground water Board, Botanical Survey of India, and many other organisations have been totally paralysed as in these departments, the offices could not even be opened .   In all other Departments of the Government of India viz. the Printing and Stationery, Indian Audit and Accounts Department, Atomic Energy Commission offices, Custom & Central Excise, Defence Accounts, Indian Bureau of Mines, Geological Survey of India, other Survey of India organisations and offices, Census, the work has been paralysed. 

The strike action became necessary due to the refusal of the Government to finalise the terms of reference of the proposed 7^th CPC, grant interim relief and merger of DA with pay, inclusion  of Gramin Dak Sewaks within the purview  of the  Pay Commission and scrapping of NPS  and the settlement of the 15 point charter of demands,  The employees are agitated over the action of the Government in getting the PFRDA enacted in the Parliament  with the support of the BJP which contains the provision to bring in the existing employees and pensioners  also within its ambit.

  

During the last 5 years, Government had been outsourcing various functions to Contractors with the result presently about one third of the workforce of the Government of India is contract labours getting only a pittance of salary.  Lakhs of posts in various Departments of the Government are presently vacant due to the ban on recruitment aggravating the unemployment situation in the country.  

The Government has virtually closed down all channels of discussions with the employees by not convening the meetings of the JCM both at the National and Departmental levels.  There had been no avenue for the employees to air their grievances and seek redressal.  Even the awards of the Board of Arbitration which were in favour of employees were allowed to pend implementation for 15 years and are now being brought before the Parliament for rejection invoking the sovereign authority of the legislature. 

The incessant rise in the prices of essential commodities has eroded the value of wages fixed in 2006 phenomenally.  The price rise over the years between 2006 and 2014 is estimated to be three times, whereas the DA compensation presently is only 90%.  It has become difficult for the employees especially at the lower levels to meet even the basic requirements of a family life.  The agonising situation arising from the apathy of the Government has given rise to anger and desperation, which has been reflected in their total participation in the strike action.

The reports received from the States indicate  that   the strike was total in Kerala, West Bengal, Assam, Tripura,  Orissa, Andhra Pradesh, Tamilnadu,  Chhattisgarh, Jharkhand, ’Madhya Pradesh, Maharashtra, J&K, HP, Rajasthan, U.P. and more than 90% in the rest of the States. 

The National Secretariat of the Confederation is scheduled to meet on 18^th Feb. to review and assess the response of the Government.  If the Government continues with its nugatory attitude, the Secretariat will be left with no other alternative but to call upon the employees to go for indefinite strike action before the general election is announced. 

M.KRISHNAN

Secretary General.